Public Notice: MEMA Seeks Public Comment for Low Interest Loan Intended Use Plan
The Maine Emergency Management Agency (MEMA) is working to help local governments obtain low interest loans (1 percent interest rate or less) to implement hazard mitigation projects and planning initiatives designed to reduce risks from natural hazards and disasters.
As a prerequisite to applying for federal funding under the Safeguarding Tomorrow Revolving Loan Fund, MEMA is collecting feedback on the Maine Safeguarding Tomorrow Revolving Loan Fund Intended Use Plan (FFY25 / SFY26). The Intended Use Plan provides information to potential loan recipients and other interested parties about goals for the entity loan fund, the criteria for the distribution of loans, and the process for management of the loan fund. The Intended Use Plan must be developed and undergo a public comment period prior to applying to the Federal Emergency Management Agency (“FEMA”) to qualify for Safeguarding Tomorrow Through Ongoing Risk Management (“STORM”) grant funds.
Please send all comments on the plan to HMAgrants@maine.gov with subject line “ME STRLF IUP Comments” by close of business Monday, September 15, 2025.
Additionally, MEMA successfully collected sixty project proposals from interested entities between June 6 and July 25, 2025. These project proposal submissions will be used to support a grant application that, if awarded, would allow Maine to establish a low-interest loan fund designed to support county, municipal and tribal government infrastructure projects that reduce risks from extreme weather events and other natural hazards to the extent allowed by federal laws and regulations.
Download the Project Proposal List (.xlsx file)
Thanks to Governor Mills and bipartisan legislation to strengthen community preparedness and resiliency for future storms, MEMA will be able to pursue $6.75 million in federal funds to jumpstart Maine’s first hazard mitigation revolving loan fund. Maine will be submitting a grant application by September 30, 2025, in pursuit of $7.5 million in total dollars, broken down to $6.75 million (90%) in federal capitalization grant funding and a $750,000 (10%) State match.
Frequently Asked Questions
- When will Maine know if it has been awarded the capitalization grant?
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After Maine’s late September grant submission to the FEMA Safeguarding Tomorrow through Ongoing Risk Mitigation Revolving Loan Fund program, Maine can expect roughly ten months to eighteen months before receipt of award (if selected). This projected timeline is a reflection of experiences from other states, however changes occurring under the new federal administration may further delay award.
- Will entities that submitted grant proposals be notified to apply if the capitalization grant is awarded to Maine?
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If the capitalization grant is awarded to Maine, MEMA will reach out to all points of contact that submitted project proposals by the July 25, 2025, deadline to announce the opening of the application phase. The application phase will only be available to the eligible entities outlined in the Project Proposal List. Any entities found not to meet the eligibility requirements of the program at the time of application will be notified of their ineligible status. Eligible applicants must be a local government*, have an approved Local Hazard Mitigation Plan at the time of application, and must have a project the significantly reduces the impacts of future disasters. Preparedness activities are not considered eligible.
*The program is using the definition of "local government" in the Stafford Act, Section 102(8) which defines a local government as the following: (8) Local Government - The term “local government” means – a county, municipality, city, town, township, local public authority, school district, special district, intrastate district, council of governments (regardless of whether the council of governments is incorporated as a nonprofit corporation under State law), regional or interstate government entity, or agency or instrumentality of a local government; an Indian tribe or authorized tribal organization, or Alaska Native village or organization, that is not an Indian tribal government as defined in paragraph (6); and (C) a rural community, unincorporated town or village, or other public entity, for which an application for assistance is made by a State or political subdivision of a State.
- How will I apply for a loan with the ME STRLF?
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If the capitalization grant is awarded to Maine, MEMA will work with eligible applicants to complete a programmatic application. The programmatic application will include a detailed description of the scope of work, project timelines, points of contact, permitting requirements, potential environmental and historic impacts, and a detailed outline of the budget. The MEMA Mitigation team will provide technical assistance through this process and ensure all components of the application are complete, and that an environmental and historical preservation (EHP) review is completed at no expense to the applicant. Maine Municipal Bond Bank will have the opportunity to perform an initial fiscal screening of all applicants to ensure the applicant has the ability to repay the loan within the terms of the program prior to award, however a more comprehensive loan application must be completed with Maine Municipal Bond Bank once the project has successfully passed all programmatic reviews. Upon completion of all programmatic requirements, the MEMA Mitigation team will connect each applicant with Maine Municipal Bond Bank personnel to complete the loan application.
- What happens after I apply for a loan?
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After an entity has passed all programmatic requirements with MEMA, then Maine Municipal Bond Bank will serve as the main point of contact for the loan application phase through to project closeout. Timelines associated with loan award will be dependent on the bank’s ability to verify the ability of the applicant to repay the loan within the terms of the agreement.
- Will the loan charge interest or administrative fees?
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An administrative fee is charged by the Maine Municipal Bond Bank to cover all costs incurred to sustain the daily maintenance of the loan throughout its life. This fee covers, but is not limited to, such costs as analyzing and underwriting loan requests, preparing and executing loan documents for closing, processing the draw requisitions, any associated fees and billing. An administrative fee not to exceed five percent (5%) of the periodic loan payment will be assessed on each payment date. The administrative fee is applied to only the amount due at each payment date and not on all outstanding amounts as of each payment date. The amount of money collected from this administrative fee will be placed in a Fee account that will be used to cover eligible costs associated with administering the ME STRLF program. This administrative fee applies to all loans and is not waived for low-income geographic area. Interest rates for any loan provided through the ME STRLF will not exceed 1%.
- What is the loan term under ME STRLF?
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The goal of Maine’s ME STRLF program is to ensure long-term financial viability of the fund. For Standard Loans, the applicants will provide their desired loan terms and the MMBB will analyze the loan term and the borrower’s ability to repay to avoid causing undue financial hardship. This includes, but is not limited to, analyzing the Audited Financial Statements, calculating Debt Service Coverage, analysis of financial revenue projections and additional calculation and analysis of other financial metrics as deemed necessary. The MMBB requires repayment pledges in the form of a public entity’s ad valorem taxing authority or a non-public entity’s general revenue pledge. If the applicant selects a term of less than twenty years and if it is determined that there would be a concern with the ability to repay, the loan term can be increased to a maximum of twenty years. Borrowers identified within low-income geographic areas will have the ability for a loan term not to exceed thirty years.
- Can I use the loan towards my non-federal match to a FEMA Hazard Mitigation Assistance grant?
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Yes, the ME STRLF can be used towards non-federal match to a FEMA Hazard Mitigation Assistance grant. The fund is intended to be flexible and may also be used as match towards other federal grant programs; however, discretion will be given to the entity delivering said federal grant programs on if the ME STRLF may be used based on their requirements.
- How do I get on MEMA’s Project Prioritization List if I missed the July 25, 2025, deadline?
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MEMA reserves the right to open the solicitation for project proposals at any time as funds become available. New project proposals, if received, will be added to the Project Prioritization List, submitted to FEMA for review, and prioritized for potential funding through the ME STRLF.
This webpage was last updated on August 5th, 2025.